JLL Income Property Trust Buys Chicago-Area Distribution Center
The REIT has acquired a recently-constructed, class A, two-building property in Elgin, IL for $47 million.
CHICAGO, IL – Institutionally-managed daily NAV REIT, JLL Income Property Trust has acquired a class A, two-building distribution center in the Chicago suburb, Elgin, IL, for $47 million.
The industrial property, Elgin Distribution Center, spans 407,000 square feet of space.
Constructed in 2020, the state-of-the-art buildings are 100% leased with a weighted average lease term of 10 years.
The larger of the two buildings spans more than 326,000 square feet and features cross-docking with 33-foot clear heights. The second building spans more than 80,000 square feet and is rear-docked with 29-foot clear heights and a font office.
The Elgin Distribution Center is located near major transportation nodes, including Interstate 90, Rte. 31, Randall Rd. and Rte. 47.
“The Elgin Distribution Center fits squarely within our industrial investment thesis as a well-located, newly constructed property with strong tenant profiles,” says Allan Swaringen, JLL Income Property Trust president and CEO. “The Elgin warehouse submarket stands out for its access to a robust labor pool and close proximity to Chicago, along with O’Hare International Airport, which we believe will drive long-term value for these properties.”
Swaringen adds, “Industrial remains an overweight target for our portfolio given our belief that it will provide strong, long-term cash-flow to our diverse portfolio. Our aggregate industrial allocation is now over $1.7 billion, or approximately 30% of our $5.9 billion portfolio, and includes 54 properties across 13 key markets.”
The Chicago metro serves as the country’s second largest industrial market, with 1.2 billion square feet of industrial space, according to LaSalle Research and Strategy. From Q2 2020 to Q1 2021, Chicago’s industrial market experienced 18.5 million square feet of net absorption and a steady decline in vacancy rates.